NHL backs Reinsdorf group's bid for Coyotes

by Rebekah Sanders - Jul. 29, 2009 09:10 PMThe Arizona Republic

The NHL's board approved Chicago White Sox and Bulls owner Jerry Reinsdorf's application to become the new owner of the Coyotes and rejected a bid by Canadian businessman Jim Balsillie, who is seeking to buy and relocate the team.

The league told a third party planning to bid on the team that its application was incomplete.

The NHL board of governors met Wednesday in Chicago to review ownership applications from three groups interested in taking over the Coyotes, currently in bankruptcy proceedings. The board, made up of team owners and executives, must vote on admitting new owners.

The unanimous rejection is a stumbling block for Balsillie, who has offered $212.5 million on the condition that the Coyotes move to Ontario.

But a U.S. Bankruptcy Court judge ultimately will decide which bidder can buy the Glendale-based team.

The board unanimously approved Reinsdorf, along with investment partners Tony Tavares and John Kaites, if the group's $148 million bid is accepted by the court Wednesday.

The Coyotes, in that case, would remain in Glendale and play their games at Jobing.com Arena.

The board did not act on the third group's application.

Ice Edge Holdings LLC, headed by former Balsillie employee Anthony LeBlanc, entered the bidding just a few weeks ago.

The group, which involves both Canadian and U.S. investors, has proposed splitting Coyotes games between Glendale and a city in Canada. The group has submitted a letter of intent to bid up to $150 million.

The NHL board said the application was "incomplete" but "endorsed the group's continued efforts to complete a bid to purchase the franchise," NHL Commissioner Gary Bettman said in a statement.

Meanwhile, Balsillie criticized the board's decision.

The NHL approved Balsillie to become a team owner before his failed attempt in 2006 to buy the Pittsburgh Penguins.

His spokesman said in a statement Wednesday that the league now must show why it believes Balsillie no longer is fit to own a hockey franchise.